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Let a thousand SMMEs bloom

Many people are not suited to being business owners. But for people who are willing to put up with long hours, lots of stress and tiresome paperwork, there are great potential rewards. The idea that entrepreneurship can fix South Africa’s unemployment problem, as some politicians and commentators have been suggesting, is unrealistic but small businesses can certainly get more people into work and improve lives.

Entrepreneurship is a new subject at some TVET colleges and a productive area for SMMEs is in the supply chains of big companies. The support of a corporate, a mining or a retail company can take many forms: low-interest loans, equipment, advice, transport, access to land or markets and offtake agreements.

South Africa also has several active incubators, helping businesses survive and thrive. One such entity is the Tholoana Enterprise Programme, which operates outside of the major supply chains and in rural areas. Backed by the SAB Foundation, Tholoana mentors owners, teaches business skills and provides access to resources. Running a business is hard work, but there is help out there for entrepreneurs who want to learn the ropes.

In this issue of Opportunity 

Minerals Council South Africa CEO Mzila Mthenjane outlines his vision for how mining can transform South Africa. The sector will play a key role in the national and global transition to new energy.

SMMEs are the focus of Nico Jacobs’ work as CEO of the South African Future Trust. An interview with Nico covers the transition this fund is making from being dedicated to helping businesses meet their payrolls during the Covid pandemic to having a broader remit, including consulting with SMME owners and putting them in touch with advisors. Nico also reflects on the inaugural South African Future Trust Summit.

A team of legal experts from Webber Wentzel present an argument for a positive approach to the growing centrality of environmental, social and governance (ESG) issues in mining. Sustainability in mining is also the subject of Rudie Opperman’s article, but his focus is technology. Opperman is well placed to discuss how mining can better utilise many new technologies to reduce environmental impact.

Energy has been an important area of focus for all businesses in recent times, and retail is no exception. Solly Engelbrecht, National Logistics Executive at The SPAR Group, applies his mind to the future of distribution in the retail sector in an energy-scarce world. Localisation is among the key approaches that should be adopted to ensure a reliable power supply. Having worked on the use of mobile apps with the insurance industry, Yaron Assabi, the founder of the Digital Solutions Group (DSG), has penetrating insights into how a frictionless commerce experience can improve customer retention.

Many South Africans will be interested and relieved to read that loadshedding can be beaten. Vodacom Group Chief Technology Officer, Dejan Kastelic, explains how “virtual wheeling” has been trialled and tested by his company, working with Eskom.

In an article about the impact of paper on forests, the Paper Manufacturers Association of South Africa (PAMSA) analyses the results of an international survey into environmental perceptions. Cymbeline Harilal, Instructional Designer at The Independent Institute of Education, contributes an article on how universities should be equipping students with the relevant skills for the modern workplace. Another article focusses on the potential South Africa’s Marine Protected Areas hold for the tourism sector.

John Young, Editor
Opportunity magazine

Read or download this issue of Opportunity

Opportunity magazine is a niche business-to-business publication that explores various investment opportunities within Southern Africa’s economic sectors. The publication is endorsed by the South African Chamber of Commerce and Industry (SACCI).

What the SA government is doing to hold plastic producers accountable

By Julia Evans

Globally, an estimated 353-million tons of plastic waste are produced each year, only about 10% of which is recycled. Locally, according to the World Wide Fund for Nature in South Africa, a little over 2.5-million tons of plastic are produced annually. The Department of Forestry Fisheries and the Environment (DFFE) says poor waste management practices mean that as much as half of post-consumer plastic is not properly disposed of and risks leaking into the environment.

At the Intergovernmental Negotiating Committee (INC-2) on Plastic Pollution, which took place in Paris in June 2023, 175 nations, including South Africa, reaffirmed their commitment to developing an international legally binding instrument to end plastic pollution, including in the marine environment, by the end of 2024.

“In my view, such an international legally binding agreement aims to bring about greater accountability, cooperation and innovation between government, industry, extended producer schemes and waste reclaimers to address the plastic pollution problem,” says Minister of Forestry and Fisheries and Environmental Affairs, Barbara Creecy.

Earth Negotiations Bulletin reported that the end of the meeting saw delegates agree to set out a path for the phase between the INC-2 and the INC-3, mandating the preparation of a “zero draft” of the new plastic treaty to be considered at INC-3. Ghana, for the African Group, supported establishing an international legally binding instrument, which is something the South African delegation also sought to do.

“In South Africa, the negotiating process is already bringing about greater agreement collaboration between all stakeholders as they work to identify achievable goals to ensure plastic waste and pollution is effectively addressed,” adds Creecy.

Placing responsibility on the producers

Creecy acknowledges that South Africa has significant waste management challenges, which include “poor landfill practices and sporadic household waste collection as well as unacceptable levels of illegal dumping in many parts of the country”.

She says that South Africa’s Extended Producer Responsibility (EPR) schemes for paper and packaging had begun the important work of diverting waste from landfill sites.

The EPR is a policy approach that shifts the responsibility from the consumer to the producer when it comes to waste management. It was established in 2008 and requires producers to develop and submit waste management plans and finance the collection, recycling and disposal of the waste generated by their products.

Jane Barrett from Women in Informal Employment: Globalising and Organising, which supports the organising of waste pickers, explains that the EPR gets manufacturers to take responsibility for some of the costs of the disposal and/or recycling of their products and packaging. For example, products like paper and packaging, electrical and electronic equipment (e-waste), lighting and tyres have been identified by South African legislation as having a significant environmental impact and are subject to EPR legislation.

Creecy says that in 2022 more than 1.5-million tons of paper and packing were diverted from landfills through recycling, recovery and treatment.

What government is doing

Creecy has previously acknowledged South Africa’s failing waste management system, which is run by local municipalities, reporting that a third of households still don’t have weekly waste removal.

To support municipalities, Creecy said her department would focus on improving cleanliness in provincial capitals as part of the reinvigorated Presidential Good Green Deeds Programme.

“Here in the Western Cape, we will be focusing on the broader Cape Flats region where many formal and informal settlements have inadequate waste removal and plastic leaches into rivers and eventually into the sea,” says Creecy.

Through the Expanded Public Works Programme, the DFFE would offer work opportunities to 2 000 women, young people and persons with disabilities per province to support the cleaning and greening of provincial capitals by assisting in litter picking in prioritised streets as well as clearing illegal dumps, planting trees and promoting recycling services.

“Their efforts are complemented by the 32 waste enterprises that have been supported to increase recycling of construction and demolition waste, plastic, packaging and other waste streams,” says Creecy.

The minister concludes that through her department’s Recycling Enterprise Support Programme, 56 startups, emerging SMMEs and co-operatives operating in the waste sector had been supported in the past six years, with the department providing more than R300-million in financial support, creating 1 558 jobs and diverting more than 200 000 tons of waste from landfills.

Article courtesy The Conversation

Government to tackle plastic pollution with labour, plastic sector

While government has made progress in tackling plastic pollution, it has committed to address the problem of plastic pollution in consultation with the plastic industry and organised labour as the sector sustains approximately 60 000 jobs.

Over the past two years, five registered extended producer schemes that support plastic waste collection and recycling have been registered in the country, resulting in the removal of 368 600 tons of plastic waste from the environment.

“It has supported between 60 000 and 90 000 waste reclaimers and it has promoted hundreds of public clean-up and public education initiatives,” Creecy says.

The minister was addressing the National Stakeholder Consultation Session on the INC-3 on the development of the international legally binding instrument on curbing plastic pollution taking place in Nairobi, Kenya.

“South Africa has a significant plastics industry that sustains approximately 60 000 formal jobs. Because of this, we will ensure that as we approach the problem of plastic pollution and the measures necessary, we work in consultation with the plastics industry and organised labour.

“In the retail and fast-food space many outlets have substituted single-use plastics with biodegradable products. We now have regulatory requirements for recyclate content in plastic and black bags,” the minister says.

The minister says the following principles must guide negotiations with the plastic sector:

    • All decisions must be based on the best available science and what this science is telling us about the impact of certain products on the environment.
    • There needs to be open and transparent sharing of information about the chemicals used in plastic production, given the various applications of plastics in food contact applications.
    • The new international legally binding instrument will result in the need for new regulatory controls on a domestic level.
    • Should the international instrument lead to obligatory measures to curb plastic pollution, there will be a need for these measures to be supported by equally ambitious means of implementation. Developing countries will argue for a financial mechanism that would ensure predictable and adequate financial resources to assist in curbing plastic pollution.

“On the domestic front we understand that this requires a holistic approach that understands the full life cycle of plastic manufacture, use and disposal in the context of the National Waste Management Strategy 2020,” the minister says.

Accordingly, South Africa has focused on three aspects:

    • Supporting and strengthening municipal waste management services to prevent plastic leaking into the environment.
    • Developing EPR schemes to collect, reuse and recycle plastic waste to promote a circular economy in the plastic industry.
    • Promoting public awareness and clean-up campaigns to remove plastic waste from rivers, wetlands and beaches.

SAnews.gov.za

2024 South African agriculture sector overview

Credit: ZZ2

The biggest tomato producer in the southern hemisphere has started planting and trading in avocados. ZZ2’s new R128-million processing facility in Limpopo for avocados and tomatoes is complete. With floor space of 11 200m² the facility is large, but then everything about ZZ2 tends to be on a big scale. The company’s website gives a figure for tomato production of 190 000 tons, a total which allows ZZ2 to cater for all market channels and income groups.

ZZ2’s new R128-million processing facility in Limpopo for avocados and tomatoes is complete.

The main operations of the company are in Limpopo but it has facilities in the Western Cape, Eastern Cape, Gauteng, North West, Mpumalanga and Namibia. ZZ2 grows a large assortment of fruits including mangoes, onions, dates, cherries, apples, pears, stone fruit, almonds and blueberries. There are ambitious plans to increase market share in avocados, a highly sought after and popular export product. A joint venture between ZZ2, Mission Produce and Criterion Africa Partners will see more than 1 000ha of avocado orchards developed, but ZZ2 will continue to develop other orchards independently. So far, the Selokwe Agri JV has planted 250ha.

The EU market has the best potential, with average per capita consumption in that area currently less than half that of the US. South Africa has an edge over Peru in that the season begins before the South American’s peak period and the aim is to supply the popular Hass variety all year round. Core Fruit has been contracted to handle the logistics and transportation of product to Europe.

According to Fruit SA, 324 000 South Africans are employed in the fresh fruit industry, which accounted for 35% (or R63-billion) of the country’s agricultural exports in 2021/22. South Africa is the world’s second-largest exporter of citrus fruit. A national export record was achieved in 2020, with 146-million cartons of fresh citrus being exported (second only to Spain).

Sugar Industry

In the sugar industry, South Africa has for a long time been used to the dominance of two large companies, Illovo and Tongaat Hulett. The latter group going into business rescue in 2020 was a major shock, not only to the many businesses which rely on the sugar producer in KwaZulu-Natal, but because the company has a long history and has become one of the biggest corporate names in the South African economy.

In 2022 seven former Tongaat Hulett senior executives appeared in court on charges of fraud for allegedly backdating sales agreements of the company’s property division to score better bonuses. The business rescue practitioners (BRP), Metis Strategic Advisors, managed to keep 2 500 employed at the company and invested more than R400-million in off-crop capital maintenance between December 2022 and April 2023.

Companies are bidding for troubled Tongaat Hulett.

In 2023, the BRP produced a statement which read, in part: “It is beyond question that the successful rescue of especially THL’s sugar operations in South Africa will save tens of thousands, possibly hundreds of thousands, of direct and indirect jobs. We take this responsibility very seriously and are confident that Tongaat Hulett has a future.” A number of bids to buy the company have been made.

The sugar industry itself faces many challenges, not least the imposition of a sugar tax and imports from countries such as Brazil, India and Thailand. Diversification is vital for the future and power generation will be an important part of that. Neither of the Big Two companies relies exclusively on South African sugar earnings: the troubled Tongaat Hulett has a big property portfolio and Illovo draws most of its profit from operations elsewhere in Africa.

A start has been made on tackling the many challenges faced by the sugar industry: the Sugarcane Value Chain Master Plan 2030 has been signed. Of the 10 443 farmers who supply Tongaat Hulett, 94% are small-scale farmers. The Illovo Small-Scale Grower Cane Development Project used 119 local contractors to develop the fields of 1 630 new growers on 3 000ha. SA Canegrowers represents 23 866 growers and is responsible for the production of 18.9-million cane tons. The Sugar Terminal at Maydon Wharf, Durban, serves 11 mills and can store more than half-a-million tons of sugar.

National assets

AgriSA states that the amount of agricultural land in South Africa in 2016 stood at 93.5-million hectares. This represents 76.3% of South Africa’s total land mass of 122.5-million hectares and about 3% less than in 1994.

A total of 70% of South Africa’s grain production is maize, which covers 60% of the cropping area of the country. KwaZulu-Natal and Mpumalanga produce sugar, but volumes are down.

The Free State Province supplies significant proportions of the nation’s sorghum, sunflower, potatoes, groundnuts, dry beans, and almost all of its cherries.

South Africa is famous for its fruit, of which 35% is citrus, 23% subtropical and nuts, 26% pome fruit, 11% stone fruit and 9% table grapes. Most of South Africa’s citrus and subtropical fruit comes from the eastern part of Limpopo. There are about 3 500 wine producers in South Africa, with the majority located in the Western Cape.

The Eastern Cape is the largest livestock province, which includes Angora goats, from whom mohair is taken. The province is the centre of the country’s mohair value chain. South Africa has a beef herd of 14-million. South Africa’s milk producers normally produce about 3.3-billion litres of milk every year.

Angora goats, Eastern Cape Province. (Credit: SAMIL Natural Fibres)

Hotel & Hospitality Expo Africa 2024

Africa’s dedicated exhibition for the Hotel & Hospitality sector

Now in its 7th year, the event has been renamed the Hotel & Hospitality Expo Africa. This is a must-attend event for everyone involved in supplying and/or buying for the hotel and hospitality market across sub-Sahara Africa.

Exhibiting at the show puts your company in front of thousands of regional and international buyers from hotels, restaurants, and resorts. Our carefully curated show sectors ensure that you are perfectly positioned to meet your target clients.

Hotel & Hospitality Expo Africa will be held from 11-13 June 2024, at the Sandton Convention Centre, Johannesburg, South Africa.

Show dates:                               

11 June 2024, 10:00 – 17:00 (GMT +2)
12 June 2024, 10:00 – 17:00 (GMT +2)
13 June 2024, 10:00 – 16:00 (GMT +2)

Venue: Sandton Convention Centre, Johannesburg, South Africa

Go to the Hotel & Hospitality Expo website

Africa’s Big 7 2024

Accelerating the food and beverage retail business in Africa

Celebrating its 21st edition, Africa’s Big 7 continues to offer high-quality, affordable food and beverage products to meet consumer needs. Our event brings together a global lineup of exhibitors, food and beverage communities, and industry leaders. It’s a prime hub for sourcing, trendspotting, and connecting with top trade buyers and influencers.

Our 2024 edition will set a new benchmark, showcasing the potential to transform the food and beverage landscape in this dynamic region and beyond.

This food and beverage event will be held from 11-13 June 2024, at the Sandton Convention Centre, Johannesburg, South Africa.

Show Dates

11 June 2024, 10:00 – 17:00 (GMT +2)
12 June 2024, 10:00 – 17:00 (GMT +2)
13 June 2024, 10:00 – 16:00 (GMT +2)

Venue: Sandton Convention Centre, Johannesburg, South Africa

Go to Africa’s Big 7 website

Investing in African Mining Indaba 2024

Since its inception in 1994, Mining Indaba has grown from a small conference to one of the most highly anticipated events in the industry, welcoming mining professionals from all over the world.

The event is solely dedicated to the successful capitalisation and development of mining interests in Africa, with a unique and widening perspective of the African mining industry. From connecting mining companies with leading investors to provide a platform for important industry discussions, supporting the long-term economic and sustainable growth across the continent.  

Mining Indaba continues to support education, career development, sustainable development, and other important causes in Africa. Each year, Mining Indaba makes a significant impact on the regional and wider economy of South Africa. In 2023, Mining Indaba increased GDP in South Africa by R248-million (with 80% coming from international sources), generated 323 full-time annual job equivalents in the country and increased national taxes by R30-million. 

In 2024, Mining Indaba will celebrate its 30th anniversary to honour how far the industry has come and discover what the future holds for Africa’s mining industry.

Register for Mining Indaba 2024

Hydrogen Economy Discussion 2024

Hydrogen Economy Discussion (4th year) brings together all the key players, including mining companies, OEMs, investors, industry associations, hydrogen equipment suppliers, infrastructure providers and independent advisers, to debate the potential of the green hydrogen economy and its implications and opportunities for South Africa and the mining industry in particular.

Key subjects that will be discussed include:
  • What is the potential of green hydrogen to support South Africa’s energy security and transform its future energy mix?
  • What is the outlook for the supply and demand of green hydrogen?
  • What is South Africa’s strategy for driving the development of the green hydrogen economy?
  • What are the latest local, regional, continental and international collaboration initiatives on green hydrogen?
  • What is the potential role of PGMs in the development of the hydrogen economy?
  • What are the challenges of developing an infrastructure for hydrogen production, storage and transportation?
  • What opportunities exist for local and international funders to invest in the green hydrogen economy?
  • Who is developing green hydrogen projects in Africa and elsewhere?

And much more…

Find out more and book your seat at https://www.hydrogenindaba.com/other-indabas/hydrogen-economy-discussion-2024

The Ocean Innovation Africa Summit is happening again this year in Cape Town

The 5th annual Ocean Innovation Africa Summit is set to take place in Cape Town from the 20th to the 22nd of February 2024. Hosted at The Avenue Conference and Events Centre, V&A Waterfront, this premier event promises a dynamic platform for engagement, collaboration, and inspiration all in the ocean economy.

The summit will feature a dynamic mix workshops, tours and site visits, ocean experts, ocean stories, networking sessions and a startup pitch competition.

Set within the African ocean impact space, the summit aims to inspire more impact entrepreneurs, entice private investors, and catalyse partnerships for a sustainable and equitable ocean economy from all over the world. Although the strong focus remains within the context of the African Blue Economy, the event will expect delegates from all over the world to attend, highlighting the global interest in Africa’s untapped ocean potential.

The event will bring together authorities, representatives from ocean industries, scientists, researchers, foundations, NGOs, private impact investors, and ocean-impact entrepreneurs.

Key highlights from last year’s edition:
  • Over 500 delegates from 59 countries, with representation from 35 African nations.
  • 88 distinguished speakers.
Tickets are available online. Use the promo code Ocean15 for a 15% discount!
Get your ticket to the 2024 Ocean Innovation Africa Summit
 
For more information, visit https://ocean-innovation.africa/

An economic overview of South Africa in 2024

The Port of Richards Bay, KwaZulu-Natal Province, South Africa. Credit: Transnet National Ports Authority (TNPA)

By John Young

As 2023 drew to a close, concerns about the functioning of South Africa’s ports and railways became more urgent. Transnet, the state-run utility which has six divisions covering ports, port terminals, railways, engineering, pipelines and property, is investigating partnerships with private operators, but the immediate priority is to fix dockside cranes and unload ships.

President Cyril Ramaphosa himself visited the Port of Richards Bay, and promised swift action. The inability of the state’s other big utility, Eskom, to ensure a reliable supply of electricity has been a concern for some time.

In response to these large national problems, the Chief Executive Officers of 130 South African companies have made a joint commitment to help. In addition to logistics and energy, crime is the third area of focus for a series of Working Groups which regularly meet and report to the President every six weeks. Calling itself “Business for South Africa”, the group first came together in response to the Covid pandemic in 2020 and helped to coordinate the successful vaccination rollout of 2021. Spokesmen for the grouping have said that they are responding to national priorities in the spirit of building a prosperous future together.

Boosting efficiency at ports

The first steps in a move by the state to partner with the private sector in boosting efficiency at ports were taken in 2022: deals were signed at the Port of Durban, Richards Bay and at East London. In 2023, these first steps became a giant leap when International Container Terminal Services Inc (ICTSI), a Philippines-based port operator, was announced as the preferred partner for a joint venture (JV) to run the Durban Container Terminal with Transnet.

Part of the plan for Durban Container Terminal Pier 2 is to increase traffic in such a way that it will be able to increase its handling capacity from the present 2.9-million TEUs (two-million 20-foot equivalent units) to 11-million TEUs by 2032.

The 2022 deal involving a 15-year concession for the loading of grain at one of Durban’s agricultural terminals was won by Afgri, one of South Africa’s biggest agricultural firms. Afgri will deal with the operation and maintenance of all landside operations, and the deal includes a similar arrangement at East London. The other two terminals in Durban are operated by SA Bulk Terminals and Bidvest Bulk Terminals.

A similar plan to concession certain dedicated rail lines to private operators has not gone smoothly. The private sector was initially very interested in the idea of running currently closed branch lines to a railhead delivering grain in the Free State or coal in Mpumalanga, for example. However, the length of contract time offered to the private operators was not long enough for them to feel it was worth their while. There was only one bid so the whole process has been put on hold while the model is reworked.

Seeing opportunity in a crisis

The conversation about the global climate crisis has seized the limelight across the world in a way that few other topics have since World War II. The debate in South Africa has its own unique contours, particularly as so much of the country’s electricity generation comes from coal, about 80%. The fact that many people would lose their jobs if coal mines close down is an important factor in calculations, and a key reason why South Africa is at the forefront about the need for a “Just Energy Transition”.

In addition to this, Eskom has not been able to avoid regular power cuts. An excellent programme exists to procure the energy that South Africa needs to expand the economy, the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). In Round Five of the REIPPPP, the cheapest solar generation cost was 37.5c/kWh while the best wind cost was 34.4c/kWh. These represent remarkably low costs.

When President Ramaphosa announced that private power investors could create up to 100MW of power without having to wait for licensing, he potentially opened up a path to growth.

Rooftop solar installations surged on news that the City of Cape Town would buy power from individual households. Credit: Versofy Solar

The utility’s inability to provide enough electricity to power the economy (and its huge debt) rank as the biggest risks to the South African economy. Opportunities for private consortiums are expanding and every window of the REIPPPP has been oversubscribed so there is an appetite to enter the South African energy market.

Eskom’s unbundling will be another spur to growth. The legal separation of transmission is the first step, and considerable progress was made on this in 2023.

The Northern Cape has attracted the bulk of solar projects, and the Eastern Cape has become the home of the wind farm, but the Western Cape has a good mixture of both modes of renewable energy. It also has an enthusiastic metropole, Cape Town, and a provincial administration determined to take full advantage of nature’s bounty. Following the announcement by the City of Cape Town that residents could get cash for power in late 2022, Versofy Solar received 1 500 enquiries in the month of January and has experienced a surge of orders for rooftop installations since then.

In 2023 a major wind farm project was announced for Mpumalanga, proving that preconceptions about renewable energy resources in that province were wrong.

Eskom’s unbundling will be another spur to growth. The legal separation of transmission is the first step, and considerable progress was made on this in 2023. The other two elements, generation and distribution, will follow. The idea is not to privatise the entities but to find private partners and to allow for competition within the various fields.

The R130-billion pledged at COP26 by the EU, the US, Germany, France and the UK to assist South Africa’s transition from oil and coal to greener technologies is not straightforward; it comes as a mixture of grants, risk-sharing instruments and concessional finance but it will allow South Africa to fund projects that will help the country to move away from fossil fuels without further stretching Eskom’s precarious finances.

The R130-billion pledged at COP26 by the EU, the US, Germany, France and the UK to assist South Africa’s transition from oil and coal to greener technologies is not straightforward…

Eskom made a breakthrough in December 2022 when South Korean company Hyonsung Heavy Industries broke ground at Elandskop signalling the first project in Eskom’s Battery Energy Storage System (BESS) project. The 8MW facility will move to producing an additional 144MW in the second stage of the project. In 2023, a larger project at Worcester, Hex BESS, was launched. Another company that will be involved in Phase 1 of the national rollout of these projects is Chinese company Pinggao.

In Cape Town a Swedish firm has spent $30-million setting up an assembly factory for lithium batteries and Bushveld Energy, a subsidiary of Bushveld Minerals, is producing vanadium battery electrolyte at its factory in East London. An Eastern Cape project involving nascent local utility Earth & Wire expects to start delivering batteries in the first half of 2024. US firm Ambri has the contract to deliver a 300MW/1 200 MWh battery system for a combined wind and solar system near Humansdorp.

Eskom’s Hex BESS site at Worcester is the largest battery storage project in Africa. Credit: SA Government News Agency

Traditional sectors

Gold mining is declining in volumes (even while prices rise), platinum group metals (PGM) prices have gone off the highs experienced during and immediately after Covid, but major activity is still underway in the sector. Vedanta Zinc International’s project in the Northern Cape may the catalyst for the establishment of a Special Economic Zone (SEZ) and an uptick in other mining investment. Already, copper mines in that province are being revived.

The biggest mining news in 2023 was that De Beers Venetia Diamond Mine started producing. This long-term conversion project of the mine to an underground mine will extend its life to 2045 and perhaps beyond.

Sibanye-Stillwater, which quickly became a major player in PGMs, continues to acquire assets in the green metals and processing cluster while Afrimat, best known for many years for concrete and construction materials, has built up a much more varied portfolio by buying mines in three provinces. In June 2023 it went back to its roots in a sense: the company’s Construction Materials division was enlarged by the purchase of Lafarge South Africa Holdings.

The biggest mining news in 2023 was that De Beers Venetia Diamond Mine started producing. This long-term conversion project of the mine to an underground mine will extend its life to 2045 and perhaps beyond.

Grain crops such as maize, wheat, barley and soya beans are among the country’s most important crops. Only rice is imported. Wine, corn and sugar are other major exports. Basing economic growth on a devaluing currency is not the best long-term method of boosting economic growth, but high-value agricultural exports and increased numbers of high-spending international tourists hold some promise for helping to get the South African economy back on a growth path.

Read more in the 2024 edition of South African Business, the premier annual guide to business and investment in South Africa:

The Border Management Authority aims to improve border security and streamline border management processes

South Africa’s rapid transition from global pariah under apartheid to a welcomed member of the global community under the country’s first democratically elected president, Nelson Mandela, brought with it many benefits. It also opened up the country to a range of threats ranging from intercontinental drug networks and arms smuggling to human trafficking. The country’s improved status also greatly increased the amount of trade that started flowing through the nation’s land ports, airports and sea ports.

This was another benefit that brought with it some complications: greater volumes of trade created huge amounts of work for officials for a range of departments tasked with various aspects of border management and increased the possibilities for criminal activity.

In response to these challenges South Africa’s newest entity, the Border Management Authority (BMA), was officially launched in the northern Limpopo town of Musina in October 2023.

Musina is a border town with a busy crossing into neighbouring Zimbabwe, one of 53 ports of entry into the country that are on land. In addition, there are 11 international airports and eight seaports. The land border alone is more than 4 800km long and so the task of policing and administering the border is a big one.

Because the Border Management Authority is a third national armed law enforcement authority (after the South African National Defence Force and the South African Police Service) it had to be formally launched by the Commander in Chief of the Armed Forces of the Republic, President Cyril Ramaphosa. And that is why a formal sword of command was officially presented to the Border Management Authority’s first Commissioner and CEO, Dr Nakampe Michael Masiapato.

The Border Management Authority is tasked with ensuring that our country’s immigration laws are enforced, and that our borders are well-protected and ports of entry well-managed.

Integration

The process of bringing the BMA into being was not done overnight. Months of preparation have seen various officials being moved from various departments to the new, integrated operation.

As Dr Masiapato describes the process, “We had to integrate officials who were actually working at the ports of entry who were deployed by these various government departments. We had to move them out of those departments into the Border Management Authority so that it becomes an integrated border management platform for the implementation of border laws of the Republic under a single command and control.”

Among the entities involved in border management are the police, the South African National Defence Force, South African Revenue Service (customs and revenue collection) and various government departments dealing with immigration, health, agriculture and the environment.

Dr Masiapato notes that there was a level of complexity because it was necessary to “integrate various systems that had been deployed by various government departments which were operating in silos”. The goal entailed “moving away from the implementation of border management through a multi-agency approach” and creating an integrated model, “with a single command and control across the ports of entry”.

The key aspect involves the BMA working closely with “three critical organs of state and those are the South African National Defence Force, the South African Police Service as well as the South African Revenue Service” but could include any other agency or body whose work might relate to border issues. The BMA operates under guidelines which specify that it is “a Schedule 3A public entity that is supposed to be operating autonomously and it operates outside the public service but within public administration”.

In welcoming the establishment of the BMA, President Ramaphosa wrote, “The Border Management Authority is tasked with ensuring that our country’s immigration laws are enforced, and that our borders are well-protected and ports of entry well-managed.”

Tasks

Among the critical functions of the BMA are:
  • Access control
  • Environmental bio-security
  • Protection of human health
  • Agricultural bio-security

Commissioner Masiapato has highlighted that the method deployed by agents at ports of entry will be a “risk-based model that would be able to identify individuals that would be intercepted and prevented from committing criminal activities”.

One of the biggest upsides of an efficiently functioning border management authority will be to improve trade between South Africa and its neighbours.

A number of successes have already been achieved by the BMA. The large and complex gathering which was the 15th BRICS Summit 2023 went off without a hitch, with the BMA contributing to that success by processing journalists, participating officials and more than 60 heads of state.

Since the BMA started functioning as a separate entity, the following interceptions have been made:
  • 141 vehicles which were stolen or hijacked
  • More than 5 500 counterfeit goods prevented from entering
  • 95 217 people trying to enter the country with no documentation
  • 35 944 people trying to enter the country who were declared undesirable

Trade and efficiency

One of the biggest upsides of an efficiently functioning border management authority will be to improve trade between South Africa and its neighbours. Dr Masiapato wants to “make sure that we streamline the movement of trade between us and our neighbouring jurisdictions and among the broader global community of nations”.

Work has begun on tightening border control with Zimbabwe and improving trade relations and synchronising systems with Mozambique. Instead of slow movement of trucks and port backlogs, Dr Masiapato wants to “make sure there is a better movement of trade”. Exporters and importers must see results, he says. Working on the efficiency of trade movement must not detract border operations from the security mission. Dr Masiapato stresses: “We also had to make sure that we look after the country’s national security and also its national interest and make sure that we are able to protect the Republic.”

For more information on the Border Management Authority, visit https://www.bma.gov.za/

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